Press Releases

ROSEVILLE, Calif.-- SPI Solar ("SPI") (SOPW:OTCBB), a vertically-integrated photovoltaic solar developer, today announced that it has entered into a definitive purchase agreement for the sale of $43.8 million of common stock in private placements. The company intends to use the net proceeds from the sale of the shares for expansion of SPI's global PV project activities, continued investment in ramping its YES!®Solar solution for the residential and small business segments and working capital purposes. The company will also use a portion of the net proceeds to make a strategic investment in Guocang Group Limited (559.HK).

The lead investor in this private placement round is a subsidiary of Evergrande Real Estate Group ("Evergrande")(3333.HK), one of the largest real estate developers in China and whose shares are listed on the Hong Kong Stock Exchange. SPI anticipates that the strategic and financial support provided by Evergrande, along with another investor in the private placement, will enhance the company's positioning in the fast-growing solar market in China. In addition, SPI Solar and Evergrande, via a separate announcement today, jointly announced a non-binding memorandum of understanding to subscribe to shares in Guocang Group Limited.

Under the terms of the purchase agreement executed on October 7, 2014, SPI has agreed to sell an aggregate 31,739,500 shares of common stock at a price of $1.38 per share. The shares are being offered and sold solely to non-U.S. investors, on a private placement basis in reliance on Regulation S promulgated under the U.S. Securities Act, as amended.

The purchase agreement contains customary representations and warranties and covenants of SPI Solar and is subject to the satisfaction of customary closing conditions. SPI Solar anticipates that the sale of the shares will close on or prior to October 16, 2014, subject to the satisfaction or waiver of the closing conditions. The shares of common stock are restricted securities, and purchasers are also subject to a lock-up provision, which prevents any transfer, sale or disposition of shares purchased prior to a date that is three months after the closing date.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

This release contains certain "forward-looking statements" relating to the consummation of the private placement, the use of proceeds, and business of SPI Solar, its subsidiaries and the solar industry, which can be identified by the use of forward-looking terminology such as "believes", "expects" or similar expressions. All forward-looking statements are expressly qualified in their entirety by this cautionary statement and the risks and other factors detailed in the company's reports filed with the Securities and Exchange Commission. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities law.

[Editor's note: See news release also issued today, October 7, 2014, entitled, "SPI Solar Enters Into Memorandum of Understanding to Subscribe to Shares in Guocang Group Limited"]